After searching for the perfect place for your family, you’ve finally found it!
Now, you need to ensure you have the proper insurance coverage to protect your finances and personal property in case of incidents. Here, we’ll talk about policies available for people who rent their homes and those who own condos.
What is Renters Insurance?
Renters insurance is an insurance policy for people who live in rented apartments or houses. It is purchased by you, the renter, to protect your assets and property in case an accident occurs in your rented dwelling.
There are three common types of renters insurance coverage:
- Personal liability: Pays for repairs needed if you accidentally damage someone else’s property or personal injury to a guest as a result of something that happens in your home.
- Personal property: Reimburses the cost of your personal possessions including but not limited to clothing, electronics, tools, furniture, and toys.
- Additional living expenses: Covers costs for living outside of the rented property while that property is being repaired (like a hotel).
What Does Renters Insurance Cover?
While the extent of coverage varies depending on your specific policy, basic renters insurance policies typically cover fire and theft. Since the policy is not as comprehensive as other types of insurance (like homeowners insurance) it is often more affordable than you might think.
If you feel you need additional coverage for specific “perils,” or other events that can occur resulting in damages, you may need to purchase it as an add-on to your basic policy. Some of these additional perils include:
- Falling objects
What Doesn’t Renters Insurance Cover?
While renters insurance can provide peace of mind, be aware that there are some things it will not cover, including:
- Structural issues: This type of damage would be covered by landlord insurance (a different type of coverage purchased by the owner that covers the property itself).
- Damages to your vehicle from theft: Items from your vehicle may be covered, but likely not the vehicle itself.
- Pests: Bedbugs, rodents, and other pests are considered more of a maintenance issue than a coverable event.
This list is not comprehensive, so check your specific policy to determine what might not be covered in your specific situation. Be sure to stay vigilant to protect yourself and your belongings.
How Much Renters Insurance Do I Need to Buy?
When choosing how much renters insurance to buy, consider how much you can afford to purchase and how much you could lose in the event of an incident.
Keep in mind that all levels of reimbursement for the common types of insurance coverage depend on the coverage limits for your specific policies. You’ll want to evaluate all of your personal possessions and consider the amount needed to replace those items should it become necessary.
What is Condo Insurance?
If you own a condominium rather than renting it, you should consider getting condo insurance. Why? Owning a space is different than renting one. Instead of a landlord or property manager handling structural issues, that becomes your responsibility.
What Does Condo Insurance Cover?
Condo insurance is more comprehensive than a renters insurance policy. In addition to other liabilities, condo insurance policies take into consideration the shared walls, floors, and ceilings in a condominium building. For this reason, a condo building is insured by its own type of policy.
The coverage provided by a condo insurance policy will typically include:
- Personal property
- Personal liability
- Guest liability
- Building property
Check with your insurance agent or within your specific policy to determine to what extent your policy covers each coverage option available.
What Doesn’t Condo Insurance Cover?
Just like any other insurance policy, condo insurance won’t cover everything. Often the items that aren’t covered include those related to natural disasters. For example, most policies won’t cover:
If you feel that you are particularly vulnerable to a specific natural disaster, speak with one of our agents to determine if there may be a coverage option available to you.
How Much Condo Insurance Do I Need to Buy?
There are several key considerations when determining how much condo insurance you need to buy. Some of these considerations include:
- Whether your HOA (if applicable) may have a policy that provides some coverage
- The cost to rebuild or repair the condo itself
- The value of your personal possessions in the home
Whether you own or rent your home, apartment, or condo, speak to one of our agents today about the right coverage options for you. We’re here to help!